Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The only reason that I am sticking around is that the management of CYPW has a fiduciary responsibility to its shareholders which I believe that they take somewhat seriously. Further, Florida State law is a lot stricter than most states with regards to punishing corporate malfeasance; e.g., issuing too many shares below market, making egregious misrepresentations of contracts, sales, technological progress, etc.
The threat of a shareholder lawsuit is very real. It won't matter how the case eventually comes out. The suit itself would be very material to the company and they would be forced to disclose it. That would make it difficult for CYPW to raise capital through the public markets once this comes to light. I don't think that they would like that situation.
My guess (or hope, maybe) is that management understands this possibility, feels the appropriate pressure and starts to perform.
If not, then a number of us could collaborate and "make it real" by filing such a lawsuit with the allegations of 1) excessive dilution, 2) too many shares issued at below market, 3) breach of fiduciary responsibility towards the shareholders, 4) misrepresentations regarding contracts, payments and the sales pipeline. Additional allegations are possible.
The quarterly reports tell the story. It's unfortunate that most posters on this board do not read them. A lot of stock was sold below market and much was also given to employees in lieu of salary (also below market). The Rule 144/145 restrictions have come off and these people need liquidity. So, it's A-OK for them to dump shares for cash at 7 cents/share or more because they got it at 6 cents/share. There's your price point folks and given the amount of stock issued that way, it'll stay at this low level for some time to come.
Chris Nelson stated: "We are honored..." Nice, but when will that translate into actual sales and real revenue? The stock price remains under $0.08.
I think he means that CYPW is really good at PR announcements and distribution, but severely lacking in actual product production and sales.
I knew the guys who had the shell originally (Robin Moody and Jim DiPrima) before Harry & acquired it in the summer of 2007. They were bad people who had run-ins with the law on a number of occasions. The way that the shell was organized, it came with inherited liabilities. Harry did not really understand this and thought of the Reverse Merger as an easy way to raise capital via the selling of shares. It was indeed all of that and that's how CYPW has been able to survive.
At the end of the day, CYPW must produce a product that actually works. Based upon Raytheon's new patent app, it's pretty clear that Raytheon has little confidence in CYPW's ability to really deliver.
Right now CYPW's finances do not look good nor do the excessive changes in management help their image.
How much equity did CYPW give up for that $100k? Until we know that, all the "PR" is just more selling of shares "on the cheap". There's still no real sales here. The Italy folks are merely deal brokers. When the quarterly report comes out, CYPW will be forced to disclose this stock sale. I'll bet that CYPW sold it at or below $0.07/share.
That part is true about full disclosure. However, the issue has to get to court first before any of that is really tested. Typical patent suits are very costly ($500k - $1.5MM) and that's something that CYPW can ill afford. Again, we do not know the contract details and my high-level contact @Raytheon (A Division VP) is - so far - unaware of anything regarding this issue.
Possibly, Raytheon's only use for a CYPW prototype was for as a "test bed" for different fuels. Raytheon may not had had any intention of using the CYPW prototype for anything else. Again, we're not getting the whole story here.
The issue here is the patent claim language. BTW, I have testified in federal courts from San Jose CA to Boston MA and from Detroit MI to Jacksonville FL and most major cities in between over 100 times as an expert witness on patent issues.
Raytheon may have found a way around CYPW's collection of patents via clever claim language and may also have decided that they could engineer their own device better and more rapidly than CYPW.
CYPW's relationship with Raytheon is a question mark. I called Raytheon when it was first announced and they would only say that they were aware of CYPW. That was all that they would admit to.
The financial condition of the company is terrible, as is the stock price. At the end of the day, CYPW is currently not a successful enterprise. It may yet do well, but with the exit of key personnel, the odds are against it. Chris Nelson is an attorney. I have spoken with him and Harry directly and I remain unimpressed with either of them.
You really should read the company's official quarterly reports. From your comments, it's clear that you do not.
Agreed. Lots of claims, lots of PR but little or no real progress. The stock market is/was at an all-time high yet we are not even at 9 cents/share. There's a good reason for that.
The alleged engine does no shareholder any good sitting on a bench in Harry's rented industrial condo. It needs to be installed at a paying customer's site to be of any value. Free biz lesson for you.
I agree that CYPW's statements have been very misleading. They really need to fix that quickly.
I agree, both can be done. However, CYPW itself is claiming R&D as its primary objective. In that case, an exit plan is required to return significant dollars to shareholders.
If this is purely R&D company (which CYPW has previously stated), then what is their exit plan? An R&D company only has value via its IP and a market for it. So, CYPW management should elucidate their exit plan and the corresponding time frame. If they cannot do that, then they are not being fully honest with the shareholders.
There are two main pathways for CYPW stock to do well:
1) Significantly reduce the O/S by a reverse split (or a series of them)
2) Successful product sales
It's not rocket science.
$660k is supposed to be impressive? That does not even make my payroll. Yeesh. At the end of the day, the stock price tells the story. Once it gets to $1.00/share, then I'll be impressed. Until then, "yada yada, mumbo-jumbo, rubar-rubar...
At the end of the day, the stock price tells the story. Let us all know when you think that CYPW will hit $1.00/share. Do you believe that it will? If so, what is the basis and rationale for your prediction on this all-important issue?
If you do not think that CYPW will hit $1.00/share, then where will it get to - and when? "Blind Faith" was a musical group - that concept should never be applied to investing activities.
If you have other more viable and "do-able" options, then please let CYPW's management know of them. They could certainly use the help right now.
The stock price tells the real story. CYPW has consistently underperformed both financially and technically. Worse yet, competitors are out there and are very aggressive. I still have hope for CYPW, but it's dwindling rapidly. They have got to start producing and selling a viable product, which they have yet to do consistently.
Given the capital structure, current valuation, number of O/S, float, etc., CYPW has little hope of being acquired for anything of significant value. Consequently, their only hope is to produce and sell their way out of the very deep hole that they have dug for themselves.
As a large shareholder, I wish them luck, but it will also take a Herculean effort on management's part - and I am not sure that they are up to that task.
Some folks in Canada Have been rather creative in IC engine design. Whether it can really work or not is in question, but I would argue that CYPW management and the BoD had better start paying attention to these developments: http://quasiturbine.promci.qc.ca/QTpasWankel.html
CYPW has serious engineering obstacles to overcome, especially in the material science arena. It's very similar to the market failure of the Mazda-promulgated Wankel Rotary IC engine: the overall performance was sub-par and the internal seal between the combustion chamber walls and the blade tips could not be reliably maintained for sufficient, marketable vehicle lifetime.
If CYPW is lucky and if management is smart, they will create a niche product that will have some utility.
The stock price is the only corporate barometer that matters.
Sadly, I believe that your prediction may indeed be correct.
That is the key question: Corporate viability. CYPW has historically run away from that question and with good reason. Their management of shareholder value has been terrible and they have been unable to get sufficient external investment cash which is not a good sign. They turned to dilution to merely survive while accumulating debt.
I hope that management and the BoD realizes that they are personally liable for this situation, should there be a lawsuit. They may wish to review Florida securities laws. That situation alone should motivate CYPW to work through the holidays and redouble their efforts to produce a salable product that actually works.
The entire team at CYPW should be thoroughly embarrassed at this ridiculous stock price. They should also work through the holidays to get things done properly so that the shareholders are protected. That is the legal responsibility of the the BoD. All of them are on the hook for this awful development.
I own quite a bit of CYPW stock so I have every right to be upset at this terrible development. The management team owes everyone an explanation - and very soon.
The stock price is still at $0.08. Until and unless CYPW can deliver working product in quantity, this will not change. There are certainly grounds for a shareholder lawsuit if this embarrassing lack of performance continues much longer.
Agreed. People posting here should really study the quarterly reports. They should also call the company and ask the hard questions.
Right now, staff who were paid in stock are dumping what they can for cash. Also, PPMs were sold at below market so they are dumping to get cash as well once their respective rule 144/145 restriction expires.
Smart investors read the quarterly reports. Sadly, most investors do not read them which is why they are constantly puzzled. The few that do read them probably do not even understand them. Sad.
I'll summarize: for years CYPW has been selling shares subject to rule 144 and rule 145 restrictions to raise money and compensate key people. When those restrictions expire (typically after 6 months), the owners of the shares dump them because they need cash. So, the share price tanks. If you want to know how many shares will be dumped six months down the road, simply look at how many are being issued now. It's not rocket science.
Further, Harry has material science and reliability issues with his design that have not yet been solved. He also has a noise problem with the US Army version that he has not been able to solve (the engine is too loud).
The "LSR" is simply a stunt to temporarily prop up the share price but it is without much commercial value.
CYPW is a company with serious problems. Hopefully, they will get addressed - and quickly.
I am counting on Harry, Frankie, et al personal legal liability to spur them on to do things properly. Otherwise, I will file a lawsuit myself for breach of fiduciary responsibility.
Thanks for keeping up your visits. That level of personal attention is beneficial to all shareholders (I am one of them) and all potential shareholders.
How does this "Team Steam" effort lead to CYPW Sales? Yes, the notoriety associated with breaking the current record would be nice, but CYPW has had a string of nationally-distributed PRs dating back a number of years. What would be different about this one - should it actually occur?
I think that CYPW management really needs to focus on a working (and reliable) product that can be sold at a profit. The market for non-street-legal land-speed-record automobiles is extremely limited.
I am not completely down on CYPW - yet.
However, I agree that they are spending far too much time on PR for insignificant "accomplishments" which is destroying credibility.
They are not putting sufficient effort behind product engineering (i.e., getting something that really works in the field) and, of course, sales.
The other serious problem is that CYPW's capital structure is almost fatally flawed due to:
1) the mess they inherited when they did the RM with Coastal Tech (a paper-only company), and
2) mismanagement in regarding issuing an excessive amount of shares for both employee compensation and capital raising.
This situation will make capital appreciation increasingly difficult to accomplish as the various Rule 144/145 restrictions expire. Too many sellers and not enough buyers.
Does CYPW have any endorsements from customers yet?
You should really read the reports and understand the capital structure of CYPW. The existing capital structure does not permit someone to "take over" given the different classes of shares and voting rights that tag along with those shares. It would take a BoD meeting, a decision and a rewriting of the corporate by-laws and a re-formulation of the capital structure (along with conversion rules) to allow a takeover my more rational, business-savvy management.
It's amazing that more stockholders ignore the quarterly reports.
Based upon those reports, CYPW is heavily in the red with a lot of outstanding obligations and encumbrances. Further, raising money with stock - and using stock as compensation - will continue to depress the price for a long time to come. The RM that Harry and Frankie did was flawed from the beginning and we are all paying the price for that.
It says at the top "Advertisement".
Please let us know when a fully-functional unit actually ships and payment is received. Reading the quarterly reports is a litany of financial misery.